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1/11/2011 9:01AM

AM Report: Chinese Stealth Jet Takes Flight

China's stealth fighter prototype made its first test flight as Robert Gates, the U.S. Defense Secretary was meeting Chinese civilian leaders in Beijing. Plus, the iPhone comes to Verizon. How will AT&T respond?

This transcript has been automatically generated and may not be 100% accurate.

... I the ... Chinese Health fighter jet welcome to the NIT that I'm Kelly Evans joined Ansett this morning By Neal Lipschutz good morning morning ... I think they are just in the story was quickly play for your before it gets the other news I to Defense Secretary Robert Gates is over in China and had downplayed the nation felt aircraft capability ... he's meeting with Chinese leaders at the same time new images are now coming up are showing up on mind ... Over prototype jet of a test flight ... interesting thing about this meal and you will have more information on this later and ABC dot com but it just goes to show that China's aircraft capability here is expanding and is coming much quicker than expected even if you're in the US ... for cutting that potentially our military technology it does and with the pizza over there ... despite denials puts on the Chinese civilian officials about the timing of this ... it can be seen as anything less than a signal which also worrisome I think is we talk all the time but economic competition between the U S and China ... but certainly the military competition is there and Anido gravely important ... and if in some way the civilian leadership of China is not completely in sync with the military leadership in China ... then there's a whole host of other diplomatic issues that are better than a crucial here so ... this this this may be a small thing but in the port and ... other bigger issues and is not the China having yet it's also about it in a potentially able to sell detect your house might develop ... I'd love more and that of light as I said a coming up will lead to the main event at midday Verizon Wireless expected to announce it is getting the Apple I phone that was once exclusive TTT ... at the end of the month Cheney Rice joins us on said ... Jamie what's interesting now we talked alot about this means for Verizon ATT China fight back here and there to do it though ... with a marketing campaign ... good reading density ... was ... preparing for a while for that ... I have three known appearances in deals come up and fell in the meantime they've been trying to beef up their network can really make improvements ... on the other big thing that the wound healing is offering really good deals to try that get people to start a ... comedy block into the two-year contract ... and though they have this marketing campaign over the summer of are You Can accreting I phone for as long as were eligible for a nap read anytime in twenty ten ... and they've been pretty successful and so analysts are predicting that next year on the rise in the night get as many subscribers initially because you have so many teams he customers who are locked into those on eighteen T has a kiss in its defense tried to just a lot of its issues that are racially had handling to that even the volume on their network yet definitely they have and that you know they'll admit that they're not with the need to be at ... times but the fading come a long way ... on an email I think the other thing to remember is that time ... no eighteenth he founded and has all these dumb no ... new customers were locked into contracts and so it's it's percent effects are sending them are locked into two-year contract ... this is an objective way to say Borsa geographically can we say that in some areas for Verizon to simply as a stronger network TTT or vice versa where's the son of a matter of contention opinion and ... I don't think it's really a matter of opinion any consumer reports came out a couple weeks ago thing the eighteenth of network with the worst of all the carriers ride with the bath ... aam and yes I mean ... just people but I ... do and ... I felt that mean that you can ... tell you still have kept up especially in major cities ... they're better in the outside of major cities they really are so keen to eighteen teams ... yet the driving but they're better than you know the people who live in a dig it evens out the mousetrap and wanting to Verizon were to worsen speaker Ridgway was they didn't have that coverage Mrs Backshall will campaign with a hat that maps the refining over to an undercover sting now ... for us when I was going up one recently with Verizon is his pre much the only option is added or the more viable ... yes I mean there's no doubt the brides and their their reputation is network quality and so are people who've been passed in eighteen T this is indeed a big opportunity dislikes and if you have been as you point out also ... it's a big boon for the advertising agency ... Witty on ... other spending billion fees as are spending ... loaded with the council is receiving a lot ... if it could check out the market that John Shipman joins us on said today that good morning and I guess that still all about euro today it seems that way of the government ... debt ... questions and concerns of these little bit again today ... Japan came and said that very they plan to buy a stake in one of the fall of the EU bailout funds which has helped support the euro ... the ECB is said to be buying some government debt as well as for the euro still so ... U S stocks taking cues from a rally in Europe and so that tells you that on the black and white in Portugal and Belgium as the bellwethers for whether this is the contagion sort it all tomorrow was focused on most bond sales and then after that it's of the axle of the war for Q earnings news with on Intel and J P Morgan in the RHI didn't make the walk humility little disconcerting in a sense that ... while positive or were talking about is a broad array of government help and I you know there's still no intrinsic to improve ... a typically aren't Jiangning ... I bought initial fund industry to switch gears has fallen out of favor in recent years but still there are some standout managers ... in addition SmartMoney magazine gives you a full run and we've invited editor-in-chief Jonathan Dell to this that good morning with a preview I haven't here I just in the redesigned I understand it a B average in the Nasdaq closing bell leader savings of graduation every extended to the essentials of the methodology your dislike these mutual funds as well we store was sixty eight hundred fund managers and then we look at their fees in their benchmarks and this was an important you do it because this is the worst year for fund managers ... since nineteen ninety eight ... all that volatility made a really tough to do good stock picking in the fund industry isn't that those were the pinnacle investment it once was a bit spun out of favor a little bit so what is it that differentiates the people they used to it ... well that got shots they make decisions that are a lot of people want me to go for companies that of the wall ... and the other won't necessarily be the cheapest a duet of ... Adobe where the money I was that some unnamed end up with Edelstein red off the tops of the larger cap stock ideas into police leading the pack ... well with large caps to tell people that were cut out of favor is hard to beat you well in this but there was a guy named Bruce Berkowitz ... and he didn't have the job they think loco what the so-called gang of Warren Buffett ... that he was after he picked the PAG is fun ... is the second-largest holder of a Ajai next to the federal government and the fund took off while and then after that to be of small caps is well well with small cap season have the scavengers to people's attended the down to look for companies you've been out of her ... and Whitney George if you have given him ten thousand dollars five years ago it had sixteen thousand up on the fact that the bench ... because these folks have been successful because to go against the grain does that mean that they're actually less predictable unity in other words if they had strong years ... in twenty ten because they don't go consensus ... on the likely to repeat this year isn't just hard to gauge that something you do have to arrive in doubt for a while so that's when we look at these firms look at five-year tenure returns ... and in this case most of our managers did better than eight percent on average over five each in a fight years as a sign that the Commission adds another common thread here said Kellie experience does count for some ... yet you know not spring chickens I'm in that and that does make a difference that means that probably why they have the guts to make these moves ... in as they say before you know that not the cheapest but they're not the most expensive but it's about you I ... was in it you can find this issues might make that God his stance is it that starting today today a fundamental breach audiences that you appreciate time so if ... I'm in and accurate the four CAM that Digits it won domestic been altered Journal and Kelly Evans have agreed to ...